Poverty dynamics in Vietnam, 2002 to 2006

During the 1990s and 2000s, Vietnam has had spectacular success at reducing poverty. Depending on the poverty line used, nationally representative household surveys show the poverty headcount has fallen by between two- thirds and three- quarters between 1993 and 2006.1 Except for China, there is probably no country in the world that experienced such rapid and sustained reductions in poverty during this period. Vietnam's poverty reduction record, however, remains fragile. While economic growth of between 7 and 8 per cent per annum in the early 2000s has dramatically improved the living standards of most people, it has also changed the structure of the economy and the nature of risks that people face. Rapid migration and urbanisation, volatility in world markets, an ageing population with a rising incidence of noncommunicable diseases, natural disasters and climate change all confront Vietnam with unprecedented challenges (Joint Donor Group, 2007).